Ethanol spot prices rallied during early afternoon trade Wednesday after new federal data showed U.S. ethanol production tumbled 5.5% to 868,000 bpd last week while demand increased 5.4% to 797,000 bpd.
Today transfer ethanol at Argo hub near Chicago was talked at $2.165 per gallon, up 4.5 cents on the day, while a January New York Harbor ethanol barge was discussed at a $2.35 to $2.42 per gallon bid/ask spread, up 3.5 cents on the day. Prompt delivered ethanol in northern California traded at $2.63 per gallon for a 3.0-cents gain.
Chicago Mercantile Exchange February ethanol futures initially rallied to a two-day high at $1.969 gallon on the data before reversing lower partly because Midwest inventories rose to an 8 1/2-month high at 6.1 million bbl, EIA data showed.
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